Hunter Co. v. Ulrich

8 So. 2d 531, 200 La. 536, 1942 La. LEXIS 1219
Supreme Court of Louisiana·Decided April 27, 1942·No. No. 36464.·Published·Cited by 26 cases

Opinion

ROGERS, Justice.

The Hunter Company, Inc., asserting that it was the owner of and in possession of certain tracts of land described in its petition, brought this suit against Bernhard Ulrich, alleging that Ulrich was slandering its title by claiming to be the owner of certain mineral rights in the property. Plaintiff alleges that the mineral rights claimed by defendant were extinguished by the prescription of ten years liberandi causa, which plaintiff expressly pleaded. Plaintiff alleges in the alternative that should it be held that the running of the prescription had been interrupted by the drilling of a well on the property, the interruption did not apply to those portions of the property which áre separated from the portion on which the well was drilled by certain strips of land belonging to the Houston River Canal Company, Limited.

Defendant, in its answer, admitted plaintiff’s ownership of the tracts of land described in the petition subject, however, to defendant’s mineral rights therein.

After hearing the parties, the court below rendered judgment rejecting plaintiff’s demands' and decreeing defendant to be the owner of the mineral rights in dispute. Plaintiff appealed from the judgment.

These are the material facts. On October 6, 1920, the Louisiana Exploration Company conveyed by warranty deed to S. S. Hunter, plaintiff’s author in title, certain lands situated in the Parish of Calcasieu in Sections 17, 18, and 19, Township 9 South, Range 10 West, and Section 13, Township 9 South, Range 11 West. In the deed to Hunter, the Louisiana Exploration Company expressly reserved from the sale the mineral rights in the lands conveyed and also stipulated that the conveyance was made subject to the rights of the Houston River Canal Company, Limited, in certain strips of land which are described in the deed. The mineral rights reserved in the sale from the Louisiana Exploration Company to Hunter were *540 subsequently acquired by Bernhard Ulrich. On February 11, 1928, Frank J. Carroll, who was then the record owner of the mineral rights now belonging to the defendant, executed a mineral lease in favor of the Kelso Petroleum Corporation covering a' portion of the lands involved herein, which lands are described as Section 19, Township 9 South, Range 10 West. On July 12, 1928, the Kelso Petroleum Corporation assigned the mineral lease to J. W. Watson so far as it affected the south half of Section 19. Under this lease J. W. Watson, some time during the latter part of the year 1928 and the first part of the year 1929, carried on drilling operations in the southeast quarter of Section 19. These operations were carried on until the well was drilled to the depth of 5,340 feet, at which depth it was abandoned as a dry hole.

The plaintiff’s position is that the Watson well was not drilled in good faith and therefore did not interrupt the running of prescription. Defendant takes the contrary position. During the course of the trial it was stipulated by counsel representing the parties that subsequent drilling operations on the land were sufficient to interrupt the running of prescription if it should be held that the drilling of the Watson well was sufficient for that purpose. The stipulation was entered into without prejudice to plaintiff’s alternative claim that certain canals running through the property separated the property into noncontiguous tracts and the drilling of a well on one tract was not sufficient to interrupt the running of prescription on the other tracts.

The first question presented for decision is whether the drilling of the dry hole, known as the Watson well, in the southeast corner of Section 19, Township 9 South, Range 10 West, constituted a serious attempt to discover oil with the view of using or exercising the mineral servitude claimed by defendant. Plaintiff contends that it was not because, first, there was no reasonable hope of discovering minerals in the well at or above the depth to which it was drilled, and, secondly, that the well was simply a scheme organized by Watson to promote the sale of stock.

In Keebler v. Seubert, 167 La. 901, 120 So. 591, 592, the rule was announced that the drilling of a nonproducing well, in good faith, is sufficient to interrupt the running of ten years’ prescription liberandi causa against a mineral servitude. This is so because, as was said in that case: “The right to the continued use of the servitude retained is .not dependent upon the successful outcome of the exploiting, * *

The rule announced in the Keebler case was adhered to in Lynn v. Harrington, 193 La. 877, 192 So. 517, and Ohio Oil Co. v. Cox, 196 La. 193, 198 So. 902.

In Louisiana Petroleum Company v. Broussard, 172 La. 613, 135 So. 1, this Court further defined the rule to mean that the well must be drilled to a depth at which there is some reasonable hope of discovering minerals in paying quantities.

Therefore, the sole question presented for decision is whether the facts developed on the trial bring the case within the rule *542 announced in the cases to which we have referred.

The trial judge, in his written reasons for judgment, found that the testimony amply supported the claim of the defendant that the Watson well was drilled in good faith and to a depth at which there was a reasonable hope, or expectation of producing minerals in paying quantities. On that phase of the case, the trial judge had this to say:

“The facts as shown by the record in connection with the actual drilling operations on the Watson Well are substantially as follows: The well was located almost directly in the Southeast corner of Section 19. It was commenced on August 11, 1928 and operations were continued until April 8, 1929, or for a period of about eight months. The well was drilled to a total depth of 5,340 feet. Ten-inch casing was set to a depth of 870 feet- and then 5% inch casing was set to a depth of 4,-014 feet. The record shows that the operators took 220 cores of the well from a depth of 3,300 feet to' the bottom of the hole. Cores, it appears, were taken for the purpose of determining the character of the various formations penetrated by the drill. There was carefully made and kept a complete log of this well and a copy of which was filed with the Department of Conservation. The record further shows that the operations on this well actually cost the sum of $48,000.00 for labor, pipe, fuel, etc., all of which went into the cost of these drilling operations. The record further shows that in addition to the above mentioned cost, the lease itself, under which these operations were conducted, cost the operators in cash $6,400.00. It may be noted further, that in the original lease from Frank J. Carroll, the then owner of the mineral lease rights, to the Kelso Petroleum Corporation, and under which lease these operations were conducted, it was agreed that unless oil and gas shall be found in paying quantities at a lesser depth, the lessee will drill each well to a depth of not less than 4,500 feet.

“The record shows that the Watson Well was located.to the West and slightly North of the Sulphur Mine Oil Field, and’ was at the time the well was abandoned in the early part of 1929 some 1,200 feet from the closest producing well. The Sulphur Mine Field is a salt dome field and at the present time the dome is practically surrounded by producing wells.

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Hunter Co. v. Ulrich, 8 So. 2d 531, 200 La. 536, 1942 La. LEXIS 1219 (La. 1942).

8 So. 2d 531 (Hunter Co. v. Ulrich) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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